More than 7,000 employees - 15 percent of the state's work force of 46,000 people - would be eligible for the one-time, early out plan proposed by Gov. John Engler. About half of them would likely accept the offer, if it wins legislative approval, The Detroit News reported yesterday.
Some departments with a disproportionate number of older workers could lose a chunk of employees. For example, the Transportation Department could lose a quarter of its workers.
The Natural Resources, Education and the Consumer & Industry departments could each lose about a fifth of employees, as could the Jobs Commission. The state Department of Civil Rights could lose 29 percent of its employees, the News said.
State Senate Democratic leader John Cherry of Clio has some reservations about the early retirement proposal.
"Brain drain is clearly an issue. Any time you have a major out-stream of the work force, you lose some institutional memory and continuity, and that could hurt," Cherry told the News.
John Denniston, president of the Michigan State Employees Association, fears the job cuts would lead to more work being handed to private companies.
"If you're only going to replace 25 percent of those who leave, you won't have enough people left to do the work. So, you'll have to go outside to get some of the work done," Denniston said.
Engler's plan calls for hiring one worker for each four who take early retirement. He estimates yearly payroll savings could add up to $25 million.
Department of Transportation chief Robert Welke called it a good idea, and said he himself would take the early out offer.
"It'll help the department. We've developed layers and layers of management over the years. We've got some good young people, engineers with master's degrees who know more than I do," Welke said. "This would give them a chance to move up."
James Carter, personnel chief at the DNR, is trying to measure the potential impact of the proposal. An estimated 21 percent of the department's 1,700 employees would be eligible for early retirement.
"It looks like the largest number of retirements would come in parks and recreation, from park managers to wildlife biologists to secretaries,"Carter said.
The proposal would reduce the age and number of years of service required to retire while increasing benefits. If approved, state employees would have a two-month window to apply for the program starting in the spring.
Benefits for each worker would be determined using a formula that considers age, years of service and salary.
Engler hopes to push the proposal through the Legislature this month, before Republicans lose control of the state House, the News said.
"This is a top priority for us," said Jeff McAlvey, Engler's chief legislative lobbyist.
"It gives us a chance to fundamentally downsize without laying off."